How Do Private Lenders Actually Find Deals to Fund?

[Ben H.]

Hey BP community — I'm in a bit of a different position than most threads I see here. I have capital I want to deploy as a direct private lender (my own money, not a fund or institution), and I'm trying to figure out the best ways to get in front of real estate investors who need funding.

I'm not a hard money lender with a big operation — just an individual looking to put my own money to work on solid deals, earn a return, and build relationships with active investors.

For those who've been on either side of this:

- Where do private lenders like me typically find deals / borrowers?

- Do investors seek you out, or do you have to put yourself out there?

- Are there any dedicated platforms or marketplaces that connect private lenders directly with investors looking for funding?

Any insight from experienced investors or other private lenders would be hugely appreciated. Thanks!

[Jeff S.]

I find this thread a bit strange. Here we have several individuals trying to build a lending business with essentially blank profiles, including one with no first name, and no disclosure on what they want to lend on, where, or any other identifying features that would allow anyone to help them or motivate anyone other than the desperate to contact them.

How do you build a lending business, really any business, when you hold everything so close to the vest?

Finding borrowers has been a common question recently, and the obvious answer has been to attend real estate clubs because that’s where a concentration of potential borrowers hangs out. It works if you lend locally, but not out of state. Marketing yourself to out-of-state borrowers is significantly more challenging, as is protecting yourself from out-of-state scammers.

You can fake ‘till you make it and claim business is great, but a bit of humility, some open disclosure, interaction with the thread, and an occasional thank you or vote will not only get you more focused answers, but are also common courtesy.